Shell’s QGC business to drill more wells

Shell’s QGC business in Australia revealed plans to drill more wells as it looks to boost gas supply to its Queensland Curtis LNG export plant and the domestic market.

Shell Australia said in a statement that about 115 newly planned gas wells would be drilled and connected in the Western Downs region of Queensland.

“The project will support up to 300 jobs, helping to boost the regional economy and provide more gas for domestic and export customers over the next 15 years,” the company said.

“Developing new supplies of gas is the most effective way to secure reliable energy for Australia and its trading partners,” Shell Australia said.

Shell’s unit did not provide further information.

Back in February 2022, Shell Australia revealed plans for a large drilling campaign.

Between now and 2024, Shell, along with its JV partners CNOOC and Tokyo Gas, would progressively drill and connect about 145 new gas wells as part of its QGC business in the Western Downs region of Queensland, it said at the time.

The wells would connect to existing gas processing plants and would bring about 210 petajoules of gas to market over the next 15 years, Shell said.

QGC produces natural gas to supply the Australian domestic market but also for export as LNG via the two-train 8.5 mtpa liquefaction plant on Curtis Island in Queensland.

The Shell-operated QCLNG export plant recently shipped its 1000th cargo since it started operations in May 2015.

The project has produced a total of 66.21 million tons of LNG since May 2015, according to CNOOC Gas & Power.

Besides Shell, CNOOC owns 50 percent equity in QCLNG’s train 1 and Japan’s Tokyo Gas has 2.5 percent equity in train 2.

Back in 2021, Shell also sold a stake in QCLNG to a unit of Global Infrastructure Partners for about $2.5 billion.

Shell, via its unit QGC, owns 80 percent of the QCLNG common facilities that include storage tanks, jetties, and operations infrastructure that service the plant’s two trains.

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